Itafos Inc. press release
Itafos Continues to Deliver Strong Operational and Financial Performance - Q2 2025 Operational and Financial Results
TSXV - TSX Venture Exchange · Phosphate · Sulfur · United States
HOUSTON, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Itafos Inc. (TSX-V: IFOS) (OTCQX: ITFS) (the “Company”) today reported its Q2 2025 financial results and provided a corporate update. The Company’s financial statements and management’s discussion and analysis for the three and six months ended June 30, 2025 are available under the Company’s profile at www.sedarplus.ca and on the Company’s website at www.itafos.com . All figures are in thousands of US Dollars except as otherwise noted. A recorded webcast of management’s commentary reviewing the Q2 2025 financial results and an update on the business will be available on the Company’s website on Monday, August 11, 2025 (see details below).
CEO Commentary
Chief Executive Officer David Delaney commented, “we are pleased to report another highly successful quarter in which the Company maintained its exceptional safety performance and posted higher production volumes at both Conda and Arraias compared to the same period last year. We completed our annual planned turnaround at Conda on time and on budget and the plant was back to running at full capacity as we exited the quarter. At Arraias, the granulation circuit was successfully restarted and the Company delivered the initial volumes of its new granulated fertilizer product, SuperForte Gran to the local market.
Operating margins declined year-over-year for Q2, with higher revenues offset by higher input costs at Conda, particularly for sulfur and sulfuric acid. While reference phosphate prices increased significantly during the second quarter, due to the nature of the Company’s monoammonium phosphate (“MAP”) offtake contract, the full benefit of the increased prices will not be realized until the second half of the year.
The infrastructure build-out of our Husky 1 / North Dry Ridge (“H1/NDR”) mines in Idaho is progressing as planned with first ore shipments to the Conda plant scheduled for later this year. Moreover, the Board of Directors recently approved a capital project to construct a new processing facility designed to lower the magnesium content of the ore from the H1/NDR mines in order to maintain P 2 O 5 production capacity at the plant.
Phosphate prices increased steadily during second quarter and the positive supply and demand fundamentals suggest fertilizer prices are likely to remain at elevated levels, leaving us well positioned for the second half of the year.”
Q2 2025 Financial Highlights
For Q2 2025, the Company’s financial highlights were as follows:
Revenues of $126.8 million in Q2 2025 compared to $105.1 million in Q2 2024; Adjusted EBITDA 1 of $31.8 million in Q2 2025 compared to $32.8 million in Q2 2024; Net income of $24.8 million in Q2 2025 compared to $16.2 million in Q2 2024; Basic earnings of C$0.18/share in Q2 2025 compared to C$0.12/share in Q2 2024; and Free cash flow 1 of $10.8 million in Q2 2024 compared to $42.5 million in Q2 2024.
The marginal decrease in the Company’s Q2 2025 adjusted EBITDA compared to the corresponding period in the prior year was due to higher sulfur and sulfuric acid costs at Conda and share-based based payment expense, partially offset by higher revenues.
The increase in the Company’s Q2 2025 net income compared to Q2 2024 was primarily due to fair value gain on investments, lower finance expenses, and lower income tax expense.
The Company’s total capex 1 spend in Q2 2025 was $28.8 million compared to $30.2 million in Q2 2024 with the decrease primarily due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days) at Conda and sulfuric acid plant turnaround in 2024 at Arraias, partially offset by an increase in growth capex 1 .
1 Adjusted EBITDA, free cash flow, total capex, and growth capex are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures” below. International Financial Reporting Standards (“IFRS”).
H1 2025 Financial Highlights
For H1 2025, the Company’s financial highlights were as follows:
Revenues of $262.5 million in H1 2025 compared to $233.1 million in H1 2024; Adjusted EBITDA of $71.1 million in H1 2025 compared to $76.0 million in H1 2024; Net income of $60.7 million in H1 2025 compared to $39.9 million in H1 2024; Basic earnings of C$0.44/share in H1 2025 compared to C$0.28/share in H1 2024; and Free cash flow of $42.1 million in H1 2025 compared to $60.2 million in H1 2024.
The decrease in the Company’s H1 2025 adjusted EBITDA compared to H1 2024 was primarily due to higher sulfur and sulfuric acid costs at Conda, which were partially offset by higher revenues.
The increase in the Company’s H1 2025 net income compared to H1 2024 was primarily due to the gain on the sale of the Araxá project, fair value gain on investment, and lower finance expenses, which were partially offset by withholding tax expenses related to the sale of the Araxá project.
The Company’s total capex spend in H1 2025 was $38.7 million compared to $36.6 million in H1 2024 with the increase primarily due to development activities at Conda (H1/NDR and magnesium oxide reduction initiatives), and activities related to the Fertilizer Restart Program at Arraias (the “Fertilizer Restart Program”).
As of June 30, 2025, the Company’s financial highlights were as follows:
Trailing 12 months Adjusted EBITDA 2 of $154.6 million; Net debt 2 of $(2.5) million; and Net leverage ratio 2 of (0.0)x.
2 Trailing 12 months Adjusted EBITDA, net debt, and net leverage ratio are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures” below.
FY 2025 Market and Financial Outlook
Market Outlook
Phosphate fertilizer prices increased significantly in Q2 2025 from the previous quarter due to lower than expected diammonium phosphate (“DAP”) and MAP exports from China and continued high demand in key import markets, including India, Brazil and Ethiopia. In the US, the implementation of tariffs caused a slowdown in imports, resulting in higher US phosphate prices. Due to the nature of the Company’s MAP offtake agreement, the full benefit of the higher pricing will be reflected in the second half of 2025.
Global grain and oilseed pricing remains soft, despite a very low stocks-to-use ratio outside of China. Low grain prices are challenging phosphate affordability globally, as overall affordability is now the weakest since the 2008 financial crash, though the phosphate market is supply limited and remains constructive. Inventories of grains and oilseeds outside of China are expected to decrease through the current crop year, resulting in a stock-to-use ratio that is projected to be comparable to those levels experienced during the food crises in 2007 and 2008. Despite those factors, crop prices have been limited in appreciation due to the large planted corn acreage in the US and uncertainty around tariffs and international demand for US grain.
The Company expects phosphate pricing to remain strong through the second half of 2025, supported by the following factors:
sustained global fertilizer demand, mainly from government-backed purchasing programs, and low global inventory levels; ongoing export restrictions from China; and limited imports into the US due to evolving tariff policies.
Financial Outlook
The Company maintained its guidance for 2025 as follows:
| | | | | | | (in millions of US Dollars | | | | Projected | | except as otherwise noted) | | | | FY 2025 | | Sales Volumes (thousands of tonnes P 2 O 5 ) 3 | | | | 340-360 | | Corporate selling, general and administrative expenses 4 | | | | $17-20 | | Maintenance capex 4 | | | | $13-23 | | Growth capex 4 | | | | $63-83 | | Environmental and asset retirement obligations payments | | | | $5-7 | | | | | | |
Q2 and H1 2025 Market Highlights
MAP New Orleans (“NOLA”) prices averaged $690/st in Q2 2025 compared to $558/st in Q2 2024, up 24% year-over-year, and averaged $643/st in H1 2025 compared to $591/st in H1 2024, up 9% year-over-year.
Specific factors driving the year-over-year increase in MAP NOLA prices were as follows:
weaker than expected Chinese exports of MAP; continued strong global demand, particularly from Africa, India and Brazil; and uncertainty surrounding US trade policy.
June 30, 2025, Highlights
As of June 30, 2025, the Company had trailing 12 months Adjusted EBITDA of $154.6 million compared to $159.5 million as of December 31, 2024 with the decrease primarily due to the same factors that resulted in lower Adjusted EBITDA during Q2 2025 as compared to Q2 2024 described above.
As of June 30, 2025, the Company had net debt of $(2.5) million compared to $26.8 million as of December 31, 2024, with the reduction primarily due to higher cash and cash equivalents and lower debt. The Company’s net debt as of June 30, 2025 was comprised of $98.1 million in cash and $95.6 million in debt (gross of deferred financing costs). As of June 30, 2025 and the end of 2024, the Company’s net leverage ratio was (0.0)x and 0.2x, respectively.
As of June 30, 2025, the Company had liquidity 4 of $178.1 million comprised of $98.1 million in cash and $80.0 million in undrawn borrowing capacity under its $80.0 million asset-based revolving credit facility (“ABL Facility”).
Operations Highlights and Mine Development
Environmental, Health, and Safety (“EHS”)
For Q2 2025, the Company sustained EHS performance, including no reportable environmental releases and two recordable incidents, which resulted in a consolidated total recordable incident frequency rate (“TRIFR”) of 0.47. For H1 2025, the Company sustained EHS performance, including no reportable environmental releases and two recordable incidents, which resulted in a consolidated TRIFR of 0.47.
Conda
In Q2 2025, Conda
Produced 79,606 tonnes P 2 O 5 compared to 69,532 tonnes P 2 O 5 in Q2 2024 with the increase due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days); Generated revenues of $116.6 million compared to $101.8 million in Q2 2024 with the increase primarily due to higher SPA realized prices resulting from improved market dynamics and higher sales volumes; and Generated Adjusted EBITDA of $32.9 million compared to $37.2 million in Q2 2024 with the decrease primarily due to lower cash margin per tonne P 2 O 5 driven by higher cash costs due to sulfur market dynamics.
3 Sales volumes reflect quantity in P2O5 of Conda sales projections.
4 Corporate selling, general and administrative expenses, maintenance capex, growth capex and liquidity are each a non-IFRS financial measure. For additional information on non-IFRS and other financial measures, see “Non-IFRS financial measures” below.
In H1 2025, Conda:
Produced 170,806 tonnes P 2 O 5 compared to 159,778 tonnes P 2 O 5 in H1 2024 with the increase primarily due to a planned short turnaround in 2025 (10 days) compared to a planned large scope turnaround in 2024 (25 days) and a shift from MAP to SPA production, resulting in higher P 2 O 5 production from similar throughput; Generated revenues of $244.9 million compared to $224.7 million in H1 2024 primarily due to higher SPA realized prices resulting from improved market dynamics and higher sales volumes; and Generated Adjusted EBITDA of $73.8 million compared to $83.8 million in H1 2024 with the decrease primarily due to lower cash margin per tonne P 2 O 5 driven by higher cash costs due to sulfur market dynamics.
MgO Reduction Project
In June 2025, the Company received authorization from the Board of Directors to proceed with a capital project to construct a new processing facility designed to lower the magnesium content of the ore from the H1/NDR mines in order to maintain P 2 O 5 production capacity at the plant (the “MgO Reduction Project”).
Exploration and Appraisal Program at Conda
As capital work at H1/NDR continues with first ore shipments expected in 2H 2025, the Company is focused on identifying and pursuing opportunities to add additional resources and reserves to the project to extend mine life beyond the current NI 43-101 - Standards of Disclosures for Mineral Projects (“NI 43-101”) estimate of mid-2037. To pursue this objective, the Company has commenced a multi-year, multi-lease exploration program, resource evaluation and permitting program at Conda with an expected annual cost of approximately $6-8 million.
The in-fill drilling program is focused on further delineating upside potential of the Husky 1 Lease through a targeted reserve delineation appraisal that will reduce drill spacing to 250ft on center versus current spacing at 500ft.
Construction of the main access road on the previously unexplored Dry Ridge Lease started in Q3 and is ahead of schedule, allowing for initial resource delineation drilling on the Dry Ridge Lease to begin in mid Q3 2025. The initial drill program will consist of drilling on 2,400ft centers to gain crucial geologic and metallurgical information that will be used to generate initial resource models that will drive future mine planning resource estimation and permitting studies.
Core drilling and geologic modeling of the Husky 3 and Husky 4 Leases is ahead of schedule with the Bureau of Land Management and US Forest Service issuing Approval of the Exploration Plan of Operations and Environmental Assessment in late July, paving the way for exploration core drilling to begin in September, ahead of the previously proposed plan. This initial drilling will identify the site geology and characterize the resource for future mine development along the current mine trend.
In addition to these activities, preliminary work has commenced on environmental baseline resource studies that will be required for future National Environmental Policy Act permitting and regulatory approvals. These geographically near-field opportunities have the potential to extend mine life beyond the current NI 43-101 estimate of mid-2037 in an efficient manner with the objective of utilizing the current infrastructure being built out at H1/NDR.
Arraias
In Q2 2025, Arraias:
Produced 36,349 tonnes of sulfuric acid compared to 16,652 tonnes in Q2 2024 with the increase due to higher customer demand and acid consumption with the start of Partially Acidulated Phosphate Rock (“PAPR”) and Granulated Partially Acidulated Phosphate Rock (“G-PAPR”) production. In addition, production volumes were lower in Q2 2024 due to planned 45-day sulfuric acid plant turnaround; Produced 10,194 tonnes P 2 O 5 , compared to 3,794 tonnes P 2 O 5 in Q2 2024, with the increase due to ramp up of Direct Application Phosphate Rock (“DAPR”) and PAPR production and the restart of the granulation plant to produce the granulated product G-PAPR, as part of the Fertilizer Restart Program; and Generated Adjusted EBITDA of $3.4 million compared to a loss of $(0.5) million in Q2 2024 with the increase primarily due to sulfuric acid gross margin improvement driven by higher sales prices and higher production volume. In addition, Adjusted EBITDA increased due to higher dry products sales during Q2 2025.
In H1 2025, Arraias:
Produced 74,050 tonnes of sulfuric acid compared to 49,868 tonnes in H1 2024 driven by higher customer demand and avid consumption with the start of PAPR and G-PAPR production; Produced 10,727 tonnes P 2 O 5 of DAPR and PAPR compared to 3,794 tonnes P 2 O 5 in H1 2024, with the increase due to the ramp up of DAPR and PAPR production and the restart of the granulation plant to produce the granulated product G-PAPR, as part of the Fertilizer Restart Program; and Generated Adjusted EBITDA of $5.4 million compared to a loss of $(0.1) million in H1 2024 with the increase primarily due to sulfuric acid gross margin improvement driven by higher sales prices and higher production volume. In addition, Adjusted EBITDA increased due to higher dry products sales in 2025.
Q2 2025 Financial Results and Business Update Webcast
An on-demand recorded webcast of management commentary that reviews the Q2 2025 financial results, provides an update on the business and addresses analysts’ and investors’ recent frequently asked questions will be available on Monday, August 11, 2025 at 4:30 p.m. ET. The webcast will be available on the Presentations & Events page of the Company’s website www.itafos.com/investors/presentations-fact-sheets/ and will be available for 90 days.
About Itafos
The Company is a phosphate and specialty fertilizer company with businesses and projects spanning three continents:
Conda – a vertically integrated phosphate fertilizer business located in Idaho, US, with the following production capacity: approximately 550kt per year of MAP, MAP with micronutrients (“MAP+”), superphosphoric acid (“SPA”), merchant grade phosphoric acid (“MGA”) and ammonium polyphosphate (“APP”) approximately 27kt per year of hydrofluorosilicic acid (“HFSA”)
Arraias – a vertically integrated phosphate fertilizer business located in Tocantins,Brazil, with the following production capacity: approximately 500kt per year of single superphosphate (“SSP”) and SSP with micronutrients (“SSP+”) approximately 40kt per year of excess sulfuric acid (220kt per year gross sulfuric acid production capacity)
Farim – a high-grade phosphate mine project located in Farim, Guinea-Bissau; and Santana – a vertically integrated high-grade phosphate mine and fertilizer plant project located in Pará, Brazil
The Company is a Delaware corporation headquartered in Houston, Texas. The Company’s shares trade on the TSX-V under the ticker “IFOS”. The Company’s shares also trade in the US on the OTCQX® Best Market (“OTCQX”) under the ticker symbol “ITFS”. The Company’s principal shareholder is CL Fertilizers Holding LLC (“CLF”). CLF is an affiliate of global private investment firm Castlelake, L.P.
For more information, or to join the Company’s mailing list, please visit www.itafos.com .
Forward-Looking Information
Certain information contained in this news release constitutes forward-looking information, including statements with respect to: import and export tariffs; the Company’s planned operations, strategies and projects, including the MgO Reduction Project; the timing for the commencement of operations and first ore at H1/NDR; the expected resource life of H1/NDR; exploration activities to extend mine life; and economic and market trends with respect to the global agriculture and phosphate fertilizer markets. All information other than information of historical fact is forward-looking information. Statements that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future include, but are not limited to, statements regarding estimates and/or assumptions in respect of the Company’s financial and business outlook are forward-looking information. The use of any of the words “intend”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “would”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward-looking information.
The forward-looking information contained in this news release is based on the opinions, assumptions and estimates of management, some of which are set out herein, which management believes are reasonable as at the date the statements are made. Those opinions, assumptions and estimates are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These include the Company’s expectations and assumptions with respect to the following: commodity prices; operating results; safety risks; changes to the Company’s mineral reserves and resources; risk that timing of expected permitting will not be met; changes to mine development and completion; foreign operations risks; changes to regulation; environmental risks; the impact of weather and climate change; risks related to asset retirement obligations, general economic changes, including inflation and foreign exchange rates; the actions of the Company’s competitors and counterparties; financing, liquidity, credit and capital risks; the loss of key personnel; impairment risks; cybersecurity risks; risks relating to transportation and infrastructure; changes to equipment and suppliers; concentration risks, adverse litigation; changes to permitting and licensing; geo-political risks; loss of land title and access rights; changes to insurance and uninsured risks; the potential for malicious acts; market and stock price volatility; changes to technology, innovation or artificial intelligence; changes to tax laws; the risk of operating in foreign jurisdictions; the risks posed by a controlling shareholder and other conflicts of interest; risks related to reputational damage, the risk associated with epidemics, pandemics and public health; the risks associated with environmental justice; and any risks related to internal controls over financial reporting risks. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions is not exhaustive.